Russia – Saudi Arabia agree on stabilising oil market

Riyadh : The indications given by the Russian President, Vladimir Putin in the last month concerning collaborations with Saudi Arabia are beginning to materialise. On Sunday, Russia and Saudi Arabia signed a coherent mutual agreement for oil market collaborations. While there has been unanimity between both countries regarding the stability of the oil market, Saudi Arabia guarantees that Russia’s role in it is significant. The collaborations between Russia & Saudi Arabia with respect to oil appears to be a warning bell for the United States, which has been dominating the oil markets until now.

Russia - Saudi Arabia agree on stabilising oil market

Since the past few months, many attempts have been made on an international level to avert the plunge in the oil market. While Russia has taken the lead in it, it has also made collaborations with ‘OPEC’ which is the main organization of the oil producing countries. Against the backdrop of the ‘G20’ summit, the Russian President, Vladimir Putin arranged for a special meeting and made deliberations with the Deputy Crown Prince of Saudi Arabia, Mohammad Bin Salman. After these deliberations, the cooperation between Russia & Saudi Arabia with regards to oil expedited.

The Russian President while addressing the ‘World Energy Congress’ in Turkey at the start of this month in his speech said that it will support the initiative taken by ‘OPEC’ to limit crude oil production. Thereafter, discussions continued to take place between Russia & Saudi Arabia over oil collaborations. Efforts were being taken to incorporate Russia into OPEC after it took the decision to reduce oil production.  On the same grounds, Saudi Arabia also invited Russia for a meeting in Riyadh.

Russian Energy Minister Alexander Novak had an independent meeting with its Saudi Arabian counterpart Khalid bin Abdel Aziz al-Falih. Important negotiation was made in this meeting on various points that include Russia’s involvement in the decision taken by ‘OPEC’, oil market stability and collaborations between Russia & Saudi Arabia. Both nations signed mutual agreements to increase cooperation in the crude oil & natural gas industries during this meeting. According to this agreement, both countries are to mutually cooperate on various projects in the energy sector. This includes the technology used in the energy sector and some joint projects that have already been initiated as informed by the Saudi Arabia’s Energy Minister.

Both the countries seemed positive over the stability & collaborations in the energy sector after the meeting. At this time, Saudi Arabia’s Energy Minister said that Russia is one of the World’s leading oil producers and plays an important role in stabilizing the oil market. Also, the Russian Energy Minister clarified that Russia would support its decision to reduce the production of crude oil. Apart from Saudi, the Russian Ministers also held discussions with other oil producing Arab nations from the gulf.

The collaborations between Russia & Saudi Arabia that started over oil, may prove to be an important warning bell for the Unites States. While Saudi Arabia was already upset with the stand taken by the US with regards to Syria & Iran, the approval of the 9/11 bill has added to it. This resulted in tensions between the two nations which lead to Russia and Saudi Arabia coming close together. Even though there are disagreements between Russia & Saudi Arabia over issues concerning Syria & Iran, it is believed that it has sent clear indications to the United States by coming together over the issues concerning oil.